From http://au.ds.ign.com/articles/814/814126p1.html
Australia, August 21, 2007 - There have been a lot of questions from hardcore Nintendo fanboys in Australia directed at their favourite company - particularly after this year's E3. Now, after a significant price drop has brought the Xbox 360 Core pack down to AU$399.95 - the same pricepoint as the Wii in this market, we got a little curious about what was going on behind closed doors at Nintendo Australia.
We had a lengthy chat with Greg Arthurton, Marketing Manager at Nintendo Australia. We put some tricky questions to him - questions that have been echoed in forums around the web by the Nintendo-devoted who have been a little concerned as of late about Nintendo's mainstream focus. Arthurton addresses the Wii's current lack of games, Nintendo's apparent blasé attitude towards gaming press, the possibility of a price-drop and cracking new markets. Moreover, he also delves into the importance of hardcore fans, forging new franchises and much more in this telling interview.
IGN AU: Hi Greg. Thanks for chatting with us. Can you tell us a little about your position?
Greg Arthurton: I'm the marketing manager at Nintendo Australia, so basically all of the marketing function is channelled through me. I look after and help plan all of our marketing activities and implementation across Australia. There are four people in the marketing department underneath me and I report to a director of sales and marketing. I've been in the role for just over four years.
IGN AU: With Nintendo's focus on expansionary markets and audiences, how is Nintendo catering to the long-time Nintendo fans and hardcore gamers?
Greg Arthurton: With regards to the hardcore gamers, the hardcore gamers will always be important to Nintendo, even though Nintendo basically sees that the growth of the whole industry is about opening up more [markets] and new people to videogames who wouldn't ordinarily play videogames. But that's not to say that Nintendo is walking away from those core gamers that have been with Nintendo for more than 20 years - and that'll be apparent with games like Metroid coming out. It's just an absolutely brilliant first person shooter and it shows how the Wii is ideal for first person shooters; also games like Mario Galaxy, which is a classical Mario game, but on a whole new format.
IGN AU: There's a general impression with very vocal fans that Nintendo doesn't have the same focus on the player as much as it does on expansion, and that long-time fans are getting left behind in search of new, fertile markets.
Greg Arthurton: Look, if that's the case, then I'm really disappointed to hear that. Where Nintendo is going is actually trying to expand who actually plays videogames. There is no way we're taking our eye off the 'core gamer unit', the core Nintendo fan who's sort of put Nintendo where it is now. The fact that there's games like, as I mentioned before, Metroid coming out, Super Mario Kart was announced at E3, Super Smash Bros. Melee is coming out, due for first quarter next year; Zelda: The Phantom Hourglass is coming out - all core-specific games. We've all heard about the Wii Zapper - it's a throwback to the NES Zapper, something that retro core fans will remember.
These are all components that we know the core gamer will actually be favourable towards. When I hear that type of comment, I get really disappointed because I know that Nintendo is really still developing the right types of games for those kinds of people.
IGN AU: To a point. I mean, to cut through all the marketing spin, if we look at the E3 presentation this year, 80 percent of the presentation was devoted to mainstream-appeal titles like Wii Fit and videos of non-demographic-specific players. There were only small moments given to the titles you mentioned. That really does shout out Nintendo's priorities at a public level.
Greg Arthurton: Well, when they do things like Wii Fit, [E3] is just a very good forum to show it, and it's also very important to opening up new audiences. If Nintendo was just hell-bent on opening up new audiences, you wouldn't see titles like Mario Galaxy, Metroid, Super Paper Mario, Mario Kart, Smash Bros and Zelda: Phantom Hourglass all coming within six months.
Wii Fit is a very important for Nintendo, but there's considerable development in those core games, those core properties, those core franchises that are really important to the Nintendo game player. And the fact that there's so much great product based around those core franchises coming out in such a short period of time - and people tend to think that, just because they spend a little bit more time on Wii Fit at the E3 press conference, that it's all over for us core gamers.
I honestly get a bit concerned, because I've heard a bit of that feedback coming from hardcore gamers saying 'Nintendo don't care about us anymore', and I'm sort of a little more privy to the games currently in development and what we're bringing out and why we're bringing them out. The next batch of games coming out are classical Nintendo games that the hardcore gamers will just love to play.
Now guys, when you get Metroid, it is just a brilliant, brilliant game. When they get Mario Galaxy, they'll be blown away. Zelda: Phantom Hourglass is a fantastic game just generally using the touch-screen only. For people internally here who have played the game, they said, 'You know, I never thought I could really be challenged again playing a Zelda game,' and these are hardcore, Zelda players. The games and the developments are definitely there.
IGN AU: Are you seeing successes locally with expanding into new markets and demographics?
Greg Arthurton: Very much. We're basically just in the throes at the moment of trying to determine what that level of success is. A lot of the information that we're getting back is anecdotal or based upon our own 'executive estimates' for want of a better term. But we believe, for example, looking at our database, there are more than 230,000 people out of the Nintendo DS owners [in Australia], who are female.
You look at the success of those Brain Training games in Australia - those are aimed at the older demographic. The Touch Generation games - which, again, are a range of games that aren't specifically designed for the hardcore user - those have sold more than half a million units in Australia. That's the avenues that we believe we've had a great deal of success in opening up new areas. You know, with the female youth and also with the 35-plus.
From an Australian perspective, the industry is a billion dollar industry. To get to a billion dollar industry, there are a lot more people playing videogames. Not all of those people playing videogames can be hardcore users. So, it's a combination of many different, varied people.
IGN AU: What sorts of marketing strategies are you using to target these new markets? How are you marketing games to the elderly, for instance?
Greg Arthurton: Different media touch points - so we're communicating through different media, but we're also trying to give them experiential experiences. The perfect example for us was, in the space of one week, we were involved from a sampling perspective in the Girlfriend model search. Obviously that was a marketing activity that targeted 10 to 14 year-olds. The very next weekend, we were at the Sydney Retirement and Lifestyle Expo - which is obviously for people over 60-plus. That's just a snapshot of how we're going about attracting new audiences and older and younger age perspectives.
IGN AU: Do you feel there's the chance, though, that by focussing your attention on growing these new markets, you're actually shrinking your dedicated and hardcore markets?
Greg Arthurton: Well, I think if we weren't producing games like Metroid, we weren't producing games like Mario Galaxy, we weren't producing games like Super Paper Mario, we weren't releasing games like Resident Evil - I would suggest that's the case. But the fact that we're still bringing those types of games - that's not to mention Zelda: Phantom Hourglass that's also coming out on DS - if we were walking away from those great games, then potentially yes, that could be the case. But those games are coming out as well; and those are games that realistically core gamers, who have been with Nintendo all these years, will want to play. And when they get them, they'll have a great time playing those games.
We really sort of have a dual focus. We go straight for that core gamer with our traditional style of software but we're also opening up new areas with different types of software at the same time.
Greg Arthurton: There are always new games in development, and games like Animal Crossing is a relatively new franchise. …Well, it's new in the respect that it's about a year and a half old. Again, it's a franchise that's beginning to take a bit of legs as a console and a handheld perspective. It's very hard to get a new franchise established. I mean, there are new games being released all the time, and potentially, if it hits the mark, it can lead into a whole new franchise. So there are games coming out all the time.
Phoenix Wright: Ace Attorney - that's a great example. It's a fantastically involving game, but at the same time, is it potentially going to open up a new franchise? Hotel Dusk - again, we haven't seen that type of game before, but Hotel Dusk was a new style of game that can potentially develop a very successful franchise of game.
Nintendo are still trying to be innovative in the way it develops its games - for that core Nintendo consumer, as well as the new Nintendo consumer.
IGN AU: From the retail perspective, it seems like there are a lot more DS titles on the market right now, compared to the rather sparse Wii shelves. Where are the games for Wii? We're still locally seeing the same drought seen during the N64 and GC era. When will the floodgates open?
Greg Arthurton: Umm, for me, I think we're going to see the opening of the floodgates at the backend of this year. We've just been having meetings with a lot of third party developers and publishers in Australia and they've been unveiling their release plans for the rest of the year. We're very, very happy to see the style of games that are actually coming out for both DS and Wii.
That's probably just taken a while to get to - for all of the third party publishers to embrace the platforms - but that has definitely taken place now and the results are definitely going to be seen in the back half of this year.
For example, THQ are bringing WWE to the Wii with Smackdown vs. Raw. Smackdown vs. Raw has been in the top three best selling games for the Christmas period for the last three years, and the fact that it's on Wii now, with Wii's unique functionality, it's a really important thing for Nintendo. All of EA's major franchises are now coming to Wii. We had a meeting with the key EA people last week and they were unveiling their plans - and it's an extremely strong list that they've got coming through on all platforms - but also exclusively on the Wii. We also had a meeting with the Sega people a couple of weeks ago and their support has been very, very strong for the Nintendo platforms, particularly with the Mario vs. Sonic game.
I genuinely believe that the next four months leading into the Christmas period there is going to be a predominance of quality software for the Wii and DS, which will really drive the system through to Christmas.
IGN AU: There's been a feeling in the publishing industry that Nintendo's attitude towards specialist press (gaming websites, magazines and TV shows) has changed in the last five or so years. Does Nintendo still value specialist press?
Greg Arthurton: In what respect?
IGN AU: Well, there's a clear lack of Wii debug kits out there, early access to code, sometimes no review copies of games until well after release - if at all; it just seems like Nintendo is shying away from specialist press.
Greg Arthurton: I don't think so at all. With respect to the availability of debug units and pre-release code, that's not really something I'm able to comment on. It's an area that we've never really had a great deal of pre-development code. And, as soon as we have the ability to show code to press, we actually try to set up tours or press showings as quickly as possible.
IGN AU: Do you think that that's an adequate way of showing a game, like Metroid or Super Paper Mario for instance, that needs to be played for a dozen hours or so?
Greg Arthurton: Well, basically, it's what we have. I mean, it's a situation whereby we have a certain amount of pre-release code at our disposal for media use. We absolutely do our best to get that code to as much of the media as possible for as long as possible. It is difficult for us to have it available longer as it is pre-final version code and therefore has confidentialities for Nintendo. And I know from an internal perspective, there's been absolutely no movement from the core press.
IGN AU: Is it Nintendo Australia's decision on how to handle local press? Or do you get a directive from Nintendo of America or Japan?
Greg Arthurton: No, there's no directive from America or Japan; it's all done on a local basis.
IGN AU: The 360 and Wii are now effectively the same price in Australia - AU$399.95. What was Nintendo's internal reaction to the drop?
Greg Arthurton: Realistically speaking, we thought it was interesting that they thought they had to do that. At the end of the day, that's their decision to drop their price - to be honest, the reaction internally was that it was obviously interesting, it was something interesting for the marketplace, but then again, we move on and do the best we can with our Nintendo product.
With respect to it being the same price as the Wii, then yes you're right; but the Core system is the same price as the Wii. The Core system has made up only two to three percent of Xbox 360 units sold through. If you look through at the GfK figures for the previous weeks, the more expensive system that 97 or 98 percent of [Xbox] consumers want was readjusted down in its official price to its market price.
IGN AU: And the natural question that follows: will we see a Wii price drop soon?
Greg Arthurton: Not that I'm aware of, no. And to be honest, I can't see why there would be. From a global perspective, the Wii is just selling at an amazing rate all around the world and I don't think there's any real need for a price-drop. Obviously that' not a decision for me to actually make, though.
IGN AU: Who's decision is it, ultimately?
Greg Arthurton: It's a global decision.
IGN AU: So if there is a price drop, it'll come through the US, and there will be a trickle-off effect to other territories?
Greg Arthurton: It would come predominantly from Japan - it wouldn't come from America. The direction would come from Japan and it would filter through to all the other territories.
IGN AU: Thanks so much, Greg. I really appreciate your time - and I think fans will be happy to hear a lot of what you said.
Greg Arthurton: Thanks very much, Patrick.
I can give VGChartz a little extra info here. I know Greg - I worked with him when I was at IR Gurus (on the early AFL titles), and he was working at Acclaim. He was the marketing manager of Acclaim Australia - and quit before the company folded I think.
Pretty nice guy from memory, can't say too much else. Glad to see he is still at NOAust - and that I have a useful contact there ;)
(its also interesting to know that the ex-boss of Acclaim Australia - Mike Fegan - now runs IR Gurus, and has for several years. IR Gurus recently put out Heatseeker & Heroes of the Pacific before that)
Gesta Non Verba
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